India's Digital Expansion: Quadrupling Data Centre Capacity for AI Future

India's data centre capacity has increased fourfold since 2020, reaching 1,575 MW, driven by the IndiaAI Mission. This expansion aims to support AI research and innovation, with initiatives like AI Kosh and indigenous model development strengthening the country's technology ecosystem for economic growth and public service advancements.

India's data centre capacity has seen a remarkable fourfold increase since 2020, expanding to approximately 1,575 megawatts as the country bolsters its digital infrastructure to meet the rising demand for artificial intelligence (AI). Reports from the Ministry of Electronics and Information Technology indicate a significant surge from 375 MW in 2020.

This expansion aligns with India's strategic scaling up of its computing infrastructure under the IndiaAI Mission, which equips researchers, startups, and innovators with access to high-performance computing resources. As of June 2026, the Mission boasts over 45,000 Graphics Processing Units (GPUs) available for use, as noted by the Ministry.

By August 2026, a total of 237 projects had utilized the subsidized AI computing resources, accumulating approximately 93.18 lakh GPU hours. This initiative provides affordable, high-performance computing for AI model development, research, and testing, particularly benefiting Indian researchers and innovators by lowering entry barriers.

The country's data centre infrastructure primarily girds technology and commercial hubs like Mumbai, Navi Mumbai, Chennai, Hyderabad, Bengaluru, Delhi-NCR, and Gujarat. However, the Ministry highlights an expansion into new investment destinations, notably Andhra Pradesh, Madhya Pradesh, Chhattisgarh, and West Bengal.

In parallel, efforts are being made to develop indigenous AI models. Among 506 applications, the government has selected 20 foundation model proposals, which include Large Multimodal and Small Language Models. This initiative aims to enhance India's capacity to create AI models tailored to local languages and contexts.

Further underpinning the burgeoning AI ecosystem, AI Kosh had amassed over 14,000 datasets and 331 AI models by July 2026, serving researchers and developers. With an investment of approximately Rs 10,372 crore, the IndiaAI Mission is committed to nurturing domestic AI capabilities, fostering innovation, and driving economic growth and improved public service delivery, as reported by the Ministry.